+ 1 to keeping the magneto portion of the magdyno as a working magneto, though having it serviced would be an excellent idea. There will be people here who can recommend someone reliable.
On the dynamo front, again I'd recommend having it repaired, then you can either keep it for 6v lights or use a modern solid state voltage regulator to convert to 12V.
I'm not sure about converting dynamos into alternators, but what you CAN get is a range of alternators designed as a direct replacement for the Lucas motorcycle dynamos, made by Alton in France. Over here they can be bought from BT-H, the electronic magneto suppliers. Not cheap, though.
http://www.bt-h.biz/alton-generators-7-c.asp
The nuclear option would be a complete magdyno replacement using a BT-H for the mag partion:
http://www.bt-h.biz/md1r--magdyno-singl ... r-19-p.asp
as well as an Alton generator on top.
Once you have added up the price of those two, the cost of getting your existing magdyno overhauled will suddenly look a whole lot less painful on the wallet...
A.